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The Indian equity benchmark indices fell for the fifth straight session, led by unsupportive global cues and weak domestic sentiments. The Nifty index opened in the green, but the gains soon fizzled out, as the index slipped from intra-day high of 11,360 and thereafter traded with negative bias throughout the session before closing 0.5% lower at 11,271. The broader market indices ‘BSE Midcap and BSE Smallcap’ too ended lower by 1.5% and 1.2%, respectively. Barring FMCG, which ended 0.2% higher, all the other sectoral indices witnessed selling pressure and closed in the red with Auto, Metals, Capital Goods and Oil & Gas being the top losers.
In the absence of any major domestic and global triggers, selling pressure could continue in the coming sessions, hence we maintain our cautious stance on the Indian markets in near term. The focus of investors would be on Q1FY20 earnings season, as it is likely to induce stock specific volatility. Globally, investors would keenly watch for Fed meeting scheduled on 30/31 July. We would advise Investors to stay focused on selective blue chip companies, while traders should strictly hedge their leveraged positions.
Stock in News
* Asian Paints’ Q1FY20 consolidated revenue grew by 17% YoY to Rs 5,131cr, wherein revenue from paints and home improvement business both went up by 17% and 19% YoY respectively. On operational front, EBITDA grew by 24% YoY to Rs 1,156cr while margins expanded by 140bps to 22.5% led by softer raw material prices. Further, profit for the quarter came in at Rs 655cr, up by 18% YoY.
* CG Consumer Electricals’ Q1FY20 consolidated revenue grew by 12% YoY to Rs 1,347cr largely led by volume growth. On operational front, EBITDA came in at Rs 192cr, up by 15% YoY while margins expanded slightly by 36bps to 14.2%. Profit for the quarter grew by 17% YoY to Rs 122cr.
* Jubilant FoodWorks posted its Q1FY20 results, wherein revenue grew by 10% YoY to Rs 940cr. During the quarter, some changes was incorporated in accounting standards because of which its EBITDA grew by 54% YoY to Rs 219cr while margins came in at 23.3%. Further, profit for the quarter remained flat at Rs 75cr.
Religare Super Ideas
Berger Paints (I) Limited (BERGEPAINT)
Buy Berger Paints (I) Limited @318-320 Stoploss 310 Target 340 CMP 322.50
BERGEPAINT has been showing strength and consolidating in a range around its record high despite weak broader market. Indications are in the favour of retesting the upper band of the consolidation range and possibly witness a breakout also this time. We advise accumulating fresh longs in the given range.
IndusInd Bank Limited (INDUSINDBK)
Sell IndusInd Bank Limited Aug Fut @1380-1390 Stoploss 1425 Target 1300 CMP 1367.80
The recent decline in the banking index has dented sentiment across the board and INDUSINDBK too is facing that heat. It has failed to surpass the hurdle around 1550 levels and witnessed sharp sell-off of late. It’s on the verge of fresh breakdown thus we suggest using any technical bounce to create fresh shorts within the given range.
IOC added around 30% in open interest as long buildup was seen in it in previous session. Current chart pattern also indicates further up move in its price. We suggest buying IOC in cash as per below levels.
Strategy:- BUY IOC BETWEEN 146-147, STOPLOSS AT 143, TARGET 154.
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